LG lays down law on gifts, money to employees

LG Group has banned its employees from giving money and gifts to business associates and partners, as well as receiving them, in a bid to firm up its corporate code of ethics this year.

“We have changed the code of ethics to mandate that our employees decline any money given by their business partners, or in fact anyone related to their business dealings, in the form of congratulations or condolences [such as to mark promotions or the end of the year],” a spokesman for the group said.

“We will also make sure our affiliates strictly apply these changes from this year.”

Until last year, employees the group and its affiliates were not obliged to report to their respective ethics bureaus unless they receive money or gifts worth more than 50,000 won ($47).

LG Group made the changes at the end of last year and plans to officially notify its affiliates within weeks to seek their cooperation, it said.

It said it will also stop announcing the weddings of executives’ sons and daughters on its bulletin board to discourage gift-giving that could be viewed cynically as seeking favoritism or have ties to corrupt practices.

LG Group Chairman Koo Bon-moo said the conglomerate was committed to practicing strict and morally sound management.

Yonhap